DOTUSDT
The trading price of DOT has breached critical support levels and has recently pierced the $2.05 barrier on December 13, and has since continued downward pressure. Since December 6 (when the trading price was $2.208), the price of DOT has decreased to current levels ($1.854) representing a 16% decline in less than one week.
Investment Thesis & Strategy
Short-Term (Next 2-4 Weeks)
Pressure continues on DOT to breach the support zones of $1.78-$1.95. The RSI (24.7) is oversold and suggests that a tactical bounce can occur, however the conviction of that bounce will be difficult to confirm without an increase in volume. Avoid aggressive long positions until there is evidence of a reversal through $2.00.
Medium-Term (3-6 months)
The $1.80-$2.10 area represents a compelling opportunity to accumulate shares for the patient investor. The supply halving in March of 2026 is a significant catalyst for the price of DOT, and the recent weakness may be a result of capitulation prior to institutional buying. Many analysts have identified this area as a 'home range' for long-term holders.
Actionable Recommendation:
Entry Level: Conservative entry should occur in tranches of $1.80, $1.70 and $1.60 if the macroeconomic environment further deteriorates.
Exit Target (6 month Horizon): $2.50-$3.00 (potential pre-supply halving rally).
Stop Loss: Breach of the structural support zone below $1.70.
Position Size: Due to extreme fear in the market and high volatility of altcoins based upon retail flows, position size should be limited to 2-3% of total assets. Positions should be managed with caution during this volatile period.
$DOT DYOR #WriteToEarnUpgrade #BTCVSGOLD
